- Egypt, China’s XD Group strengthen cooperation to localize electrical manufacturing.
- Focus on new production lines, technology transfer, and local content.
- Projects support Egypt’s renewable energy and national grid modernization.
Mahmoud Essmat, the Minister of Electricity and Renewable Energy, held a meeting with Zhou Qi Qi, Chairperson of China’s XD Group, along with his delegation, accompanied by Mona Rizk, Chairperson of the Egyptian Electricity Transmission Company, and Osama Abdullah, Chairperson of EGEMAC.
The discussion centered on enhancing and broadening the collaboration between XD and Egypt's electricity industry, highlighting the importance of boosting investments, creating new production lines, localizing the manufacturing of electrical gear, transferring technology, and increasing the proportion of locally sourced inputs and materials.
Essmat and his guests examined the company’s operational strategy in collaboration with EGEMAC, as well as its growth initiatives and new machinery set to be produced in Egypt. Conversations also addressed enhancing the local content of transformer manufacturing, procuring industrial inputs from the national market, and creating specialized measurement and testing facilities. The minister emphasized the benefits and incentives that the state provides to promote industrial localization and local products.
The meeting evaluated advancements in current projects carried out by XD–EGEMAC, specifically those concerning the New Delta, where voltage activation has been successfully accomplished. Details were also shared regarding the condition of additional substations, compliance with set timelines and commissioning schedules, as well as the firm’s growth strategies.
This encompasses new manufacturing plants and production lines, introducing new product ranges, acquiring necessary land, enhancing current assets, and evaluating anticipated economic returns. All conversations were centered on Egypt’s sustainable development strategy, ongoing initiatives to strengthen the national electricity grid, enhance its ability to integrate renewable energy, and broaden its reach in external markets via regional trade agreements. Both parties concurred on the significance of localising the production of high-voltage devices, such as surge arresters and smart meters.
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Essmat reiterated the ministry's dedication to backing local production of equipment, machinery, and all necessary components for the electricity system. He emphasized the state's wider industrial localization strategy and the advancements achieved in the last ten years in enhancing the investment environment for local and international investors.
He also highlighted Egypt’s energy plan, which seeks to increase the share of renewable energy in the energy mix to more than 42% by 2030 and 65% by 2040, thereby generating a significant market and robust demand for electrical equipment, especially in renewable energy initiatives.
Zhou Qi Qi conveyed his gratitude for the ministry’s ongoing support, highlighting that the practical solutions and local alternatives provided by the ministry have significantly influenced the company's growth and its choice to launch new production lines. He mentioned that the ministry's constant monitoring and support had sped up implementation and assisted in overcoming obstacles during project execution.